3 equity analysis print out for binding

7/31/2019 3 Equity Analysis Print Out for Binding

http://slidepdf.com/reader/full/3-equity-analysis-print-out-for-binding 1/60

Equity Analysis

Decisions like whether you should buy or sell when trading in shares market is a difficult

task to do. It requires split hair analysis of the market to do so one also needs to have excellent

understanding of market.

Equity analysis decide the stance one would take in the share trading industry finding out the

high and lows in market and analyzing the equity is of utmost important before making any

sort of investment. Technical analysis fundamental analysis and other form a part of the equity

analysis.

Equity analysis examines all the essentials techniques and teaches you how to apply them

successfully. It incorporates sections on technical analysis and economic value added valuation

modules and the principles behind equity analysis in the context of both companies and

markets.

1) Learn how to interpret financial statements.

2) Learn how to most effectively analyze, information to forecast the future.

Equity analysis treats stocks valuation as a practical, hands on tool rather than a vague,

theoretical exercise and covers the entire valuation process from financial statements analysis

through the financial investment.MOSTLY IT IS READ BY

Private bankers, treasurers, corporate financial managers, risk managers, financial and equity

analysis.

Equity / ordinary shares capital, as a long term source of finance, represents ownership

capital / securities and its owners – equity- holders / ordinary shareholders – share the reward

and risk associates with the ownership of corporate enterprises. It is also called ordinary share

capital in contrast with preference share capital which carries certain preferences / prior rights

in regard to income and redemption.

When a company is formed, it first issues equity shares to the promoters. As the need for

financing increases, the company may issue ordinary shares to specific and small numbers

privately to promoters, relatives, friends, business associates, employees, financial institutions,

mutual funds, venture capital funds and so on. As the company grows further, it raises capital

from the public.

1



Features

1) Residual Claim:

Equity shareholders have a residual claim on the income of a company. They have a claim

on income left after paying dividend to preference shareholders.2) Residual Claim on Assets:

Equity shareholders have a residual claim on ownership of company’s assets.

3) Right to Control:

Equity shareholders are the owners of the company. They have voting rights in the meeting of

the company and have a control over the working of the company.

4) Maturity:

Equity shares provide permanent capital to the company and cannot be redeemed during the

life time of the company. Under the companies’ act 1956, a company cannot purchase its own

Shares.

5) Limited Liability:

Another distinct feature of equity shares is limited liability. Thus although, equity

shareholders are the real owners of the company, their liability is limited to the value of share

they have purchased.

• Equity does not create any obligation to pay a fixed rate of dividend.

• Equity can be issued without creating any charge over the assets of the company.

• It is a permanent source of capital and the company has not to repay it except under

liquidation

In case of profits, equity shareholders are the real gainers by way of increased dividends and

appreciation in the value of shares

Need of the Study

2



To start any business capital plays major role. Capital can be acquired in two ways by issuing

shares or by taking debt from financial institutions or borrowing money from financial

institutions. The owners of the company have to pay regular interest and principal amount atthe end

The role of equity analysis is to provide information to the market. An efficient market relies

on information: a lack of information creates inefficiencies that result in stocks being

misrepresented (over or under valued). This is valuable because it fills information gaps so that

each individual investor does not need to analyze every stock thereby making the markets more

efficient.

Objectives

3



• To analysis the fluctuation in IT shares.

• The data which is collected from IT companies is opening price and closing price of

daily trading

• Comparative analysis of three tough competitors Wipro, Infosys and TCS through

fundamental analysis.

• Suggesting as to which company’s shares would be best for an investor to invest.

4



Research Methodology

Research design or research methodology is the procedure of collecting, analyzing and

interpreting the data to diagnose the problem and react to the opportunity in such a way where

the costs can be minimized and the desired level of accuracy can be achieved to arrive at a

particular conclusion.

The methodology used in the study for the completion of the project and the fulfillment of the

project objectives.

Primary Data:

The sample of the stocks for the purpose of collecting Primary data has been selected on the

basis of Random Sampling.The stocks are chosen in an unbiased manner and each stock is

chosen independent of the other stocks chosen. The stocks are chosen from the IT sector.

The sample size for the number of stocks is taken as 3 for fundamental analysis of stocks as

fundamental analysis is very exhaustive and requires detailed study.

Secondary Data:

Secondary data is a information that is obtained from those sources other than direct sources

and the information collected through the mentioned base.

• Companies hand book.

• Magazines and journals.

• Text book published on equity analysis

• Web sites.

•Other records.

5



Statistical Tools

1. Return = v e - v b

V b = value at the beginning

V e = value at the end

2. Variance (σ2

)= (x-µ)2

3. R = SUM x*y Square root of x^2 * square root of y^2

6



Limitations

• This study has been conducted purely to understand Equity analysis for investors.

• The study is restricted to three companies based on Fundamental analysis.

• Data collected only for limited number of IT companies that is Wipro, Infosys’s and

Tata.

• The data which is collected mostly primary data. If it is necessary secondary data.

• Detailed study of the topic was not possible due to limited size of the project. Suggestions and

conclusions are based on the limited data of 6 months.

7



Review Literature

Applied Equity Analysis treats stock valuation as a practical, hands-on tool rather than a vague,

theoretical exercise—and covers the entire valuation process from financial statement analysis

through the final investment recommendation. Its integrated approach to valuation builds viable

connections between a firm’s competitive situation and the ultimate behavior of its common

stock.

Applied Equity Analysis emphasizes techniques that work on a day-to-day basis,

rather than traditional but often impractical academic approaches. By combining a solid

discussion of finance and investment theory with techniques popular among today's buy- and

sell-side analysts, it presents a picture of stock investment analysis that is analytically rigorous,

aggressively uncompromising, and based on earnings the true driving force of Wall Street.

The ultimate goal of the equity analysis is the exploitation of any difference between

a stock's price and its value. Equity analysis must focus on a firm's ability to produce returns

that exceed capital costs, and then estimate the firm's future power to maintain and increase

those returns in marketplace.

- James English (May 14, 2001) McGraw-Hill

Propelled by India’s economic growth, Indian securities market is continuing to

provide opportunities for wealth creation. However, a timely and accurate valuation of

securities is imperative for arriving at better investment decisions. Equity Research and

Valuation explains the various steps involved in evaluating securities. It dwells on the concepts

of equity research and valuation, macro and micro economic analyses and highlights the role of

regulators in handling stock market bubbles. Porte’s five force analysis and competitive

strategy, and Hirschman’s index of industry concentration ratio are also included. The book

also covers the various financial statements on company analysis and discounted cash flow

valuation models.

Dun & Bradstreet ( December 2007) Tata McGraw Hill

Technical analysts analyze the historical graphical pattern of stock prices. They also look at the

graph line drawn by stock moving averages over different periods. They are really interested if

the current price line breaks through up or down the moving average line. From this, they

8



derive a stock outlook for the future price of the stock. Fundamental analysis is concerned with

the historical financial performance of the company. A security analyst analyzing historical

data will in turn make a projection of the future performance of this company (revenues,

earnings, and growth rates). The security analyst will ultimately focus on 3 inputs to derive the

value of a stock. These are earnings per share (EPS), a discount rate and a growth rate. The

discount rate is equal to the risk free rate of return

G. Malkiel’s “A Random Walk Down Wall Street

9



Industry Profile

A stock market is a public entity a loose network of economic transactions, not a physical

facility or discrete entity for the trading of company stock shares and derivatives at an agreed

price; these are securities listed on a stock exchange as well as those only traded privately.

The size of the world stock market was estimated at about $36.6 trillion at the start of October

2008 The total world derivatives market has been estimated at about $791 trillion face or

nominal value11 times the size of the entire world economy The stocks are listed and traded on

stock exchanges which are entities of a corporation specialized in the business of bringing

buyers and sellers of the organizations to a listing of stocks and securities together. The largest

stock market in the united nations by market capitalization, is the new York stock exchange so

In Canada, the largest stock market is Toronto stock exchange, and the Bombay stock exchange

America, participants in the stock market range from small individual stock investors to

large to hedge fund traders , who can be based anywhere. Their orders usually end up with a

professional at a stock exchange, who executes the order of buying or selling.

Some exchanges are physical locations where transactions are carried out on a trading floor, by

a method known as open out cry. This type of auction is used in stock exchanges

and commodity exchange where traders may enter "verbal" bids and offers simultaneously. The

other type of stock exchange is a virtual kind, composed of a network of computers where

trades are made electronically via traders.

Actual trades are based on an auction market model where a potential buyer bids a specific

price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at

market means you will accept any ask price or bid price for the stock, respectively.) When the

bid and ask prices match, a sale takes place, on a first-come-first-served basis if there aremultiple bidders or askers at a given price.

The purpose of a stock exchange is to facilitate the exchange of securities between buyers and

sellers, thus providing market place the exchanges provide real-time trading information on the

listed securities, facilitating price discovery.

One of the many things people always want to know about the stock market is, "How do I make

money investing?" There are many different approaches; two basic methods are classified by

either fundamental analysis or technical analysis companies by their financial statements found

10



in filings business trends, general economic conditions, etc.technical analysis studies price

actions in markets through the use of charts and quantitative techniques to attempt to forecast

price trends regardless of the company's financial prospects.

Net worth Stock Broking Limited

Incorporated in 1993, Net worth Stock Broking Limited (NSBL) has been a listed

company at Bombay Stock Exchange (BSE), Mumbai since 1995.A Member, at the National

Stock Exchange of India (NSE) and Bombay Stock Exchange, Mumbai (BSE) on the Capital

Market and Derivatives (Futures & Options) segment, NSBL has been traditionally servicing

Institutional clients and in the recent past has forayed into retail broking, establishing branches

across the country. Presence is being marked in the Middle East, Europe and the United States

too, as part of our attempts to cater to global markets. We are a Depository participant at

Central Depository Services India (CDSL) with plans to become one at National Securities

Depository (NSDL) by the end of this quarter. We have our customers participating in the

booming commodities markets with our membership at the Multi Commodity Exchange of

India (MCX) and National Commodity & Derivatives Exchange (NCDEX), through Networth

Stock.Com Ltd. With its strong support and business units of research, distribution & advisory,

NSBL aims to become a one-stop solution to the broking and investment needs of its clients,

globally.

Strong team of professional’s experienced and qualified pool of human resources drawn

from top financial service & broking houses form the backbone of our sizeable infrastructure.

Highly technology oriented, the company’s scalability of operations and the highest level of

service standards has ensured rapid growth in the number of locations & the clients serviced in

a very short span of time. ‘Networthians’, as each one of our 400 plus and ever growing team

members are addressed, is a dedicated team motivated to continuously progress by imbibing

the best of global practices, Indian sing such practices, and to constantly evolve a

comprehensive suite of products & services trying to meet every financial / investment need of

the clients.

11



Products and services portfolio

• Retail and institutional broking

• Research for institutional and retail clients

• Distribution of financial products

• PMS Corporate finance

• Net trading

• Depository services

• Commodities Broking

Market & Research Focusing On Your Needs

Every investor has different needs, different preferences, and different viewpoints.

Whether investors prefer to make own investment decisions or desire more in-depth assistance,

company committed to providing the advice and research to help you succeed.

Net worth providing following services to their customers,

• Market Musing

• Company Reports

• Theme Based Reports

• Weekly Notes

• IPOs

• Sector Reports

• Stock Stance

• Pre-quarter/Updates

• Bullion Tracker

• F&O Tracker

Quality Policy

To achieve and retain leadership, Net worth shall aim for complete customer

satisfaction, by combining its human and technological resources, to provide superior quality

financial services. In the process, Net worth will strive to exceed Customer’s expectations.

As per the quality policy, Net worth will:

12



• Build in house processes that will ensure transparent and harmonious relationships with

its clients and investors to provide high quality of services.

• Establish a partner relationship with in its investor service agents and vendors that will

help in keeping up its commitments to the customers.• Provide high quality of work life for all its employees and equip them with adequate

knowledge & skill so as to respond to customer’s needs.

• Continue to uphold the values of honesty & integrity and strive to establish unparalleled

standards in business ethics.

• Use state-of-the art information technology in developing new and innovative financial

products and services to meet the changing needs of investors and clients.

•

Strive to be a reliable source of value-added financial products and servicesand constantly guide the individuals and institutions in making a judicious

choice of it.

• Strive to keep all stake-holders (share holders, clients, investors,

employees, suppliers and regulatory authorities) proud and satisfied.

India Info line:

The India Info line group, comprising the holding company, India info line limited and

its wholly-owned subsidiaries, straddle the entire financial services space with offerings

ranging from equity research, equities and derivatives trading, commodities trading, portfolio

management services, mutual funds, life insurance, fixed deposits, goi bonds and other small

savings instrument to loan products and investment banking. The company has a network of

over 2100 business locations (branches and sub-brokers) spread across more than 450 cities and

towns. The group caters to approximately a million customers.

India Info line Group subsidiaries:

• India Info line Media and Research Services Limited

• India Info line Commodities Limited

• India Info line Marketing & Services

• India Infoline Investment Services Limited

• IIFL (Asia) Pte Limited

13



History:

We were founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an

independent business research and information provider. We gradually evolved into a one-stop

financial services solutions provider. Our strong management team comprises competent and

dedicated professionals.

We are a pan-India financial services organization across 1,361 business locations and

a presence in 428 cities. Our global footprint extends across geographies with offices in New

York, Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the

National Stock Exchange (NSE). We offer a wide range of services and products comprising

broking (retail and institutional equities and commodities), wealth management, credit and

finance, insurance, asset management and investment banking.

We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and

DGCX for commodities trading, CDSL and NSDL as depository participants. We areregistered as a Category I merchant banker and are a SEBI registered portfolio manager. We

also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received approval from the

Monetary Authority of Singapore to carry out corporate advisory and dealing in securities

operations. Two subsidiaries – India Infoline Investment Services and Moneyline Credit

Limited – are registered with RBI as non-deposit taking non-banking financial services

companies. India infoline Housing Finance Ltd, the housing finance arm, is registered with the

National Housing Bank.

• In 2004 acquired commodities broking license; launched Portfolio Management

Service.

• In 2005 listed on the Indian stock markets.

• In 2006 acquired membership of DGCX; launched investment banking services.

• In 2007 launched a proprietary trading platform; inducted an institutional equities

team; formed a Singapore subsidiary; raised over USD 300 mn in the group;

launched consumer finance business under the ‘Moneyline’ brand.

14



• In 2008 launched wealth management services under the ‘IIFL Wealth’ brand; set

up India Infoline Private Equity fund; received the Insurance broking license from

IRDA; received the venture capital license; received in principle approval to

sponsor a mutual fund; received ‘Best broker- India’ award from Finance Asia;‘Most Improved Brokerage- India’ award from Asia money.

• In 2009 received registration for a housing finance company from the National

Housing Bank; received ‘Fastest growing Equity Broking House - Large firms’ in

India by Dun & Bradstreet.

India Info line Limited is listed on both the leading stock exchanges in India, viz. the Stock

Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both

the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and

Portfolio Management Services. It offers broking services in the Cash and Derivatives segments

of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL

as a depository participant, providing a one-stop solution for clients trading in the equities

market. It has recently launched its Investment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to

clients. These services are offered to clients as different schemes, which are based ondiffering investment strategies made to reflect the varied risk-return preferences of clients.

India Info line Commodities Limited.

India Info line Commodities Pvt Limited is engaged in the business of commodities

broking. Our experience in securities broking empowered us with the requisite skills and

technologies to allow us offer commodities broking as a contra-cyclical alternative to

equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian

commodities exchanges, and recently acquired membership of DGCX. We have a multi-

channel delivery model, making it among the select few to offer online as well as offline

trading facilities.

India Info line Marketing & Services

India Info line Marketing and Services Limited is the holding company of India Info

line Insurance Services Limited and India Info line Insurance Brokers Limited. (a) India

15



Info line Insurance Services Limited is a registered Corporate Agent with the Insurance

Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI

Prudential Life Insurance Co Limited, which is India's largest private Life Insurance

Company. India Info line was the first corporate agent to get licensed by IRDA in early

2001. (b) India Info line Insurance Brokers Limited is a newly formed subsidiary which

will carry out the business of Insurance broking. We have applied to IRDA for the

insurance broking license and the clearance for the same is awaited. Post the grant of

license, we propose to also commence the general insurance distribution business.

India Info line Investment Services Limited:

Consolidated shareholdings of all the subsidiary companies engaged in loans and

financing activities under one subsidiary. Recently, Orient Global, a Singapore-based

investment institution invested USD 76.7 million for a 22.5% stake in India Info line

Investment Services. This will help focused expansion and capital raising in the said

subsidiaries for various lending businesses like loans against securities, SME financing,

distribution of retail loan products, consumer finance business and housing finance

business. India Info line Investment Services Private Limited consists of the following step-

down subsidiaries. (a) India Info line Distribution Company Limited (distribution of retailloan products) (b) Money line Credit Limited (consumer finance) (c) India Info line

Housing Finance Limited (housing finance)

India Bulls:

India bulls are India’s leading Financial, Real Estate and Power Company with a wide

presence throughout India. They ensure convenience and reliability in all their products and

services. India bulls have over 640 branches all over India. The customers of India bulls are

more than 4,50,000 which covers from a wide range of financial services and products from

securities, derivatives trading, depositary services, research & advisory services, consumer

secured & unsecured credit, loan against shares and mortgage & housing finance. The company

employs around 4000 Relationship managers who help the clients to satisfy their customized

financial goals. India bulls entered the Real Estate business in the year 2005 with its group of

companies. Large scale projects worth several hundred million dollars are evaluated by them.

India bulls Financial Services Ltd is listed on the National Stock Exchange (NSE),

Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market capitalization

16



of India bulls is around USD 2500 million (29thDecember, 2006). Consolidated net worth of the

group is around USD 700 million. India bulls and its group companies have attracted USD 500

million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the

large shareholders of India bulls are the largest financial institutions of the world such as

Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Sector:

Since India bulls derives most of its revenues from the brokerage business, its fortunes

are very much dependent on the Performance of the capital markets, i.e. debt, derivative and

equity markets. The Indian equity markets have grown from strength to strength in the last

decade with combined daily volumes of all segments on the BSE and the NSE touching Rs 432

bn in April 2011, from Rs 215 bn in FY04.

Total shareholders in the country are over 20 m (2% of population) and this is the third

largest after the US and Japan, in absolute terms. However, if one were to compare the

percentage of all households in India that are invested in the stock markets, it is only about

1.9% as compared to an estimated 52%(including indirect ownership by way of mutual funds)

of all households in the US. This highlights the long-term potential for the sector. To apply

The Team:

India bulls Securities Ltd, main strength lies in its formidable team. This team comprising

highly qualified and experienced personnel has been responsible for the overall management of

the company and has provided direction in diverse areas of business strategy, operating

management, regulatory reporting, human resources development and product development.

Vision statement:

To become the preferred long term financial partner to a wide base of customers whilst

optimizing stake holder’s value

Mission statement:

To establish a base of 3 million satisfied customers by 2015. We will create this by

being a responsible and trustworthy partner

Corporate action:

17



An Approach to Business that reflects Responsibility, Transparency and Ethical

Behavior. Respect for Employees, Clients & Stakeholder groups

Services:

India bull’s securities provide a wide range of services that include Power India bulls:

An online trading system designed for the high-volume trader. The platform provides enhanced

trade information and executes orders on an integrated software based trading platform.

1) Equities

2) Commodities

3) Wholesale debts

4) Futures and options

5) Depository services

6) Equity research services

7) Post Trade -Custodial,

8) Depository Services

9) Payment Gateway

10) Other back office support

company profile

Way2Wealth

18



Way2Wealth is a premier Investment Consultancy Firm that has been launched with the aim

of making investing simpler, more understandable and profitable for the investors.

Way2Wealth brings a wide range of product offerings from Fixed Income Securities, Life

Insurance and Mutual Funds to Equity and Derivatives (on the National Stock Exchange) for

the convenience and benefit of it customers. Way2Wealth has over 40 easily accessible

Investment Outlets spread across 20 major towns and cities in the country

Mission:

Way2Wealth is a premier Investment Consultancy Firm, launched with the mission “to be

the pre-eminent destination for personalized financial solutions helping individuals creates

wealth”.

Philosophy:

We believe that “our knowledge combined with our investors trust and involvement will

lead to the growth of wealth and make it an exciting experience”

Heritage:

Sivan Securities started in 1984, has a long and illustrious track record of being amongst

the premier Financial Intermediaries in the country as well as being an incubator for IT start-up

firms. The Venture Capital division came to be known as Global Technology Ventures (GTV

has provided venture capital to companies such as Keshena Technologies, Mind Tree, Vega

etc.) and the Financial Intermediary Division was spun off as Way2Wealth in the year 2000.

Way2Wealth is promoted by Sivan Securities and Global Technology Ventures Ltd. Over the

years, Sivan has developed a strong reputation for navigating its investors through all the ups

and downs in the Market. Way2Wealth has inherited these same values in addition to a base of

75,000 individual customers, over 300 corporate/institutional clients. Other companies in the

group include Amalgamated Bean Coffee Trading Company Ltd. (one of the largest Coffee

Exporters in India) and Café Coffee Day, a chain of youth hangout coffee parlors. Way2Wealth

has a very credible management team, who has well over 100 man-years of experience amongst

themselves.

19



The Way2Wealth Research Desk:

Research is at the core of our advice. We believe that sound investments Decision are made on

sound analysis of facts, past performance and credible Market information. Our research cell

focuses on providing data and analysis.

To help customers make sound investment Decision. The Research cell is managed by a

highly qualified team that is handpicked and trained extensively in the proprietary Way2Wealth

Investment Philosophy centered on finding the best investment solutions for our customers.

Based in the commercial capital enables the team to have a pulse of the trends allowing

dissemination of the most up-to-date and latest information. The Way2Wealth research cell

measures up to international standards of technology and on-site resources.

Investment Outlets:

Way2Wealth Investment outlets are designed to be places where retail investors can come

in touch with Investment opportunities in an atmosphere of convenience and comfort. The look

and feel of the offices across India projects a consistent branch image for the company. The

features that enable a unique facility for retailing financial services include among others:

Easily visible branches set up in the commercial spaces of potential investment zones ranging

between 750sft to 1000sft.Most branches are located in the ground floor sporting huge glass

frontage promoting easy accessibility and reflecting our attitude of complete transparency. The

major portion of the branch area dedicated for customer use. The

furniture is in CKD formats to add flexibility in using the branch for Investors purposes.

Connectivity to NSE for trading facilities:

• Information to our customers.

• Each branch comprises of trained and qualified Investment advisors to take care of the

needs of the customers.

The Way2Wealth Planner – Your Personal Investment Guide:

Every investor has unique needs. So we have created a wide range of services, where you

will always find exactly what you are looking for. Aiding you in this effort is the quintessentialWay2Wealth Investment Planner. These hand-selected planners are made up of professionals

20



with the expertise and experience to meet your unique financial needs. These financial planners

reflect our commitment to provide financial advice based solely on your objectives without

traditional conflicts of interest.

The Way2Wealth advantage:

Personalized Investment Solutions: All our customers receive individual attention

Full choice of Investments: Mutual funds, Life Insurance, Fixed Income Instruments, Equity

and Derivatives

Unbiased advice: We do not have any products of our own

Processing support: We take care of all your paper work and provide service at your doorstep.

Investor eligibility criteria: Customers with a minimum investment amount as low as Rs. 2500

per month can avail of our services.

This unique Way2Wealth concept can be easily experienced through the innovative and

customer friendly network of Investment outlets that spans 20 major towns and cities in the

country.

Work environment:

Way2Wealth is a growing organization, which is an ideal place for individuals with high

ambitions. The working atmosphere is highly charged with a young and energetic team of

qualified professionals. The average age of the team is 28. Further it provides an environment

where conventions, protocols do not come in the way of good ideas. Being in the knowledge

industry we associate a high premium to the quality of training..

The holistic Training on investment avenues, sales, presentation skills, which are done periodically to personally enrich each individual Trust and Integrity are the values most sought

out by our customers. In addition, every individual who can also identify with the Way2Wealth

philosophy “Our knowledge

Combined with our customers trust and involvement will lead to the growth of wealth

in an exciting manner” can look forward to a long and illustrious career in the company. At

Way2Wealth, the model investors are our employees themselves. In the process of creating

wealth for our investors, the rewards structure ensures that our employees themselves are also

creating wealth.

21



Network:

In Delhi, Mumbai, Hyderabad, Chennai and Bangalore . Additionally the company has a

network of 50 Investment outlets Headquartered in Bangalore, Way2Wealth has five regionaloffices located with the state of the art infrastructure to cater to the needs of retail investors.

These outlets are spread across more than 20 major towns and cities in the country.

About way2wealth logo:

The word “Way” brings focus to the mind. It gives direction. “Wealth” denotes stability,

discipline and long term. Blue symbolizes Knowledge. We are in a Knowledge industry.

Knowledge is limitless, so is the sky and sea, both of which are blue in color. Knowledgeapplied leads to creation of wealth for our Investors. Hence, the color blue for knowledge. Red

symbolizes Trust. Red is the color of blood and the heart. Trust is a matter of the heart. Our

knowledge bears fruit only when the investor places his Trust in us. Yellow symbolizes

Excitement and also the Involvement of the investor. Yellow is a vibrant color, which evokes

feelings of excitement. We strive to make investing an exciting and involving experience for

our investors. Green symbolizes Growth. Growth in Nature is visible in the form of plants and

trees; all of which are green. Knowledge, Trust and Excitement should ultimately lead toGrowth of the investors’ wealth. Hence, the color green has been chosen for Growth.

Introduction

India is a developing country. Nowadays many people are interested to invest in

financialmarkets especially on equities to get high returns, and to save tax in honest way.

Equities are playing a major role in contribution of capital to the business from the beginning.

22



Since the introduction of shares concept, large numbers of investors are showing interest to

invest in stock market.

In an industry plagued with skepticism and a stock market increasingly difficult to predict and

contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and

Short Term Investor.

The price of a security represents a consensus. It is the price at which one person agrees to buy

and another agrees to sell. The price at which an investor is willing to buy or sell depends

primarily on his expectations. If he expects the security's price to rise, he will buy it; if the

investor expects the price to fall, he will sell it. These simple statements are the cause of a

major challenge in forecasting security prices, because they refer to human expectations. As we

all know firsthand, humans expectations are neither easily quantifiable nor predictable. If prices

are based on investor expectations, then knowing what a security should sell for (i.e.,

fundamental analysis) becomes less important than knowing what other investors expect it to

sell for. That's not to say that knowing what a security should sell for isn't important--it is. But

there is usually a fairly strong consensus of a stock's future earnings that the average investor

cannot disprove

Fundamental analysis and technical analysis can co-exist in peace and complement each other.

Since all the investors in the stock market want to make the maximum profits possible, they

just cannot afford to ignore either fundamental or technical analysis.

Equity Analysis

Equity:

T o start any business capital plays major role. Capital can be acquired in two ways by issuing


institutions. The owners of the company have to pay regular interest and principal amount at

the end.

Stock is ownership in a company, with each share of stock representing a tiny piece of

ownership. The more shares you own, the more of the company you own. The more shares you

own, the more dividends you earn when the company makes a profit. In the financial world,

ownership is called “Equity”.

• A company does not have to make periodic interest payments to creditors.

• A company does not have to make principal payments

Stock/shares play a major role in acquiring capital to the business in return investor’s are paid

dividends to the shares they own. The more shares you own the more dividends you receive.

23







efficient.

Objectives:

The main objectives of the Project study are:

Analyze the impact of qualitative factors on industries and company’s prospect Equity does not

create any obligation to pay a fixed rate of dividend. Equity can be issued without creating any

charge over the assets of the company. It is a permanent source of capital and the company has

not to repay it except under liquidation. In case of profits, equity shareholders are the real

gainers by way of increased dividends and appreciation in the value of shares. Comparative

analysis of three tough competitors Tcs ltd, Wipro lt., Infosys ltd. through fundamental

analysis. Suggesting as to which company’s shares would be best for an investor to invest.

Assumptions:

• Works only in normal share market conditions with great reliability, it also

works abnormal share market conditions, but with low reliability.

•Equity analysis is purely based on the investor philosophy, so invest objecthas vital importance associated to return along with risk.

• Cash management gets the magnitude role because the scenario of equity

analysis is revolving around the term money.

• Portfolio management, risk management was up to the investor’s

knowledge.

•Capital market trend is always friend whether short term or long term.

• Stock and not company so don’t panic or curious to do post mortem of

companies performance.

• History repast investors and speculators react in the same way to same

types of events homogenously.

• Capital market has a typical market psychology along with the other issues

perceptions, the individual trade and trust.

24



• Individual perceptions about the investment return and associated risk may

differ from individual to individual.

• Although equity analysis is an art as well as science so it also has some

exceptions.

Need of Study:

To start any business capital plays major role. Capital can be acquired in two ways by issuing


institutions. The owners of the company have to pay regular interest and principal amount at

the end





efficient

Principles

Fundamental Analysis

Fundamental analysis is a method of forecasting the future price movements of financial

instrument based on economic, political, environmental and other relevant factors and statistics

that will affect the basic supply and demand of whatever underlies the financial instrument. It is

the study of economic, industry and company conditions in an effort to determine the value of a

company’s stock. Fundamental analysis typically focuses on key statistics in company’s

financial statements to determine if the stock price is correctly valued. The term simply refers

to the analysis of the economic well-being of a financial entity as opposed to only its price

movements.

Fundamental analysis is the cornerstone of investing. The basic philosophy underlying the

fundamental analysis is that if an investor invests re.1 in buying a share of accompany, how

much expected returns from this investment he has.

The fundamental analysis is to appraise the intrinsic value of a security. It insists that no one

should purchase or sell a share on the basis of tips and rumors. The fundamental approach calls

upon the investors to make his buy or sell decision on the basis of a detailed analysis of the

information about the company, about the industry, and the economy. It is also known as “top-

25



down approach”. This approach attempts to study the economic scenario, industry position and

the company expectations and is also known as “Equity Analysis

Economic AnalysisThe level of economic activity has an impact on investment in many ways. If the economy

grows rapidly, the industry can also be expected to show rapid growth and vice versa. When

the level of economic activity is low, stock prices are low, and when the level of economic

activity is high, stock prices are high reflecting the prosperous outlook for sales and profits of

the firms. The analysis of macroeconomic environments essential to understand the behavior of

the stock prices.

The commonly analyzed macro economic factors are as follows:

Gross Domestic Product (GDP): GDP indicates the rate of growth of the economy. It

Represents the aggregate value of the goods and services produced in the economy. It consists

of personal consumption expenditure, gross private domestic investment and government

expenditure on goods and services and net exports of goods and services. The growth rate of

economy points out the prospects for the industrial sector and the return investors can expect

from investment in shares. The higher growth rate is more favorable to the stock market.

Savings and investment: It is obvious that growth requires investment which in turn

requires substantial amount of domestic savings. Stock market is a channel through which the

savings are made available to the corporate bodies. Savings are distributed over various assets

like equity shares, deposits, mutual funds, real estate and bullion. The savings and investment

patterns of the public affect the stock to a great extent

Inflation: Along with the growth of GDP, if the inflation rate also increases, then the

Real growth would be very little. The effects of inflation on capital markets are numerous. An

increase in the expected rate of inflation is expected to cause a nominal rise in interest rates.

Also, it increases uncertainty of future business and investment decisions. As inflation

increases, it results in extra costs to businesses, thereby squeezing their profit margins and

leading to real declines in profitability.

26



Interest rates: The interest rate affects the cost of financing to the firms. A decrease in

Interest rate implies lower cost of finance for firms and more profitability. More money is

available at a lower interest rate for the brokers who are doing business with borrowed money.Availability of cheap funds encourages speculation and rise in the price of shares.

Tax structure: Every year in March, the business community eagerly awaits the

Government’s announcement regarding the tax policy. Concessions and incentives given to a

certain industry encourage investment in that particular industry. Tax relief’s given to savings

encourage savings. The type of tax exemption has impact on the profitability of the industries.

Industry Analysis

An industry is a group of firms that have similar technological structure of production and

produce similar products and Industry analysis is a type of business research that focuses on the

status of an industry or an industrial sector (a broad industry classification, like

"manufacturing"). Irrespective of specific economic situations, some industries might be

expected to perform better, and share prices in these industries may not decline as much as in

other industries. This identification of economic and industry specific factors influencing share prices will help investors to identify the shares that fit individual expectations.

Industry Life Cycle: The industry life cycle theory is generally attributed to Julius

Grodensky. The life cycle of the industry is separated into four well defined stages.

Pioneering stage: The prospective demand for the product is promising in this

Stage and the technology of the product is low. The demand for the product attracts many

producers to produce the particular product. There would be severe competition and only fittestcompanies survive this stage. The producers try to develop brand name, differentiate the

product and create a product image. In this situation, it is difficult to select companies for

investment because the survival rate is unknown.

Rapid growth stage: This stage starts with the appearance of surviving firms from the

pioneering stage. The companies that have withstood the competition grow strongly in market

share and financial performance. The technology of the production would have improved

resulting in low cost of production and good quality products. The companies have stable

27



growth rate in this stage and they declare dividend to the shareholders. It is advisable to invest

in the shares of these companies.

Maturity and stabilization stage: the growth rate tends to moderate and the rate

Of growth would be more or less equal to the industrial growth rate or the gross domestic

product growth rate. Symptoms of obsolescence may appear in the technology. To keep going,

technological innovations in the production process and products should be introduced. The

investors have to closely monitor the events that take place in the maturity stage of the industry.

Decline stage: demand for the particular product and the earnings of the

Companies in the industry decline. It is better to avoid investing in the shares of the low growth

industry even in the boom period. Investment in the shares of these types of companies leads to

erosion of capital.

Growth of the industry: The historical performance of the industry in terms of growth

And profitability should be analyzed. The past variability in return and growth in

Reaction to macro economic factors provide an insight into the future

Nature of competition: Nature of competition is an essential factor that determines the

Demand for the particular product, its profitability and the price of the concerned company

scrip’s. The companies' ability to withstand the local as well as the multinational competition

counts much. If too many firms are present in the organized sector, the competition would be

severe. The competition would lead to a decline in the price of the product. The investor before

investing in the scrip of a company should analyze the market share of the particular company's

product and should compare it with the top five companies.

SWOT analysis: SWOT analysis represents the strength, weakness, opportunity and

Threat for an industry. Every investor should carry out a SWOT analysis for the chosen

industry. Take for instance, increase in demand for the industry’s product becomes its strength,

presence of numerous players in the market, i.e. competition becomes the threat to a particular

company. The progress in R & D in that industry is an opportunity and entry of multinationals

in the industry is a threat. In this way the factors are to be arranged and analyzed.

Company Analysis

28



In the company analysis the investor assimilates the several bits of information related to the

company and evaluates the present and future values of the stock. The risk and return

associated with the purchase of the stock is analyzed to take better investment decisions. The

present and future values are affected by a number of factors.

Competitive edge of the company: Major industries in India are composed of

Hundreds of individual companies. Though the number of companies is large, only few

companies control the major market share. The competitiveness of the company can be studied

with the help of the following.

Market share: The market share of the annual sales helps to determine a

Company’s relative competitive position within the industry. If the market shares high, the

company would be able to meet the competition successfully. The companies in the market

should be compared with like product groups otherwise, the results will be misleading.

Growth of sales: The rapid growth in sales would keep the shareholder in a

Better position than one with stagnant growth rate. Investors generally prefer size and growth

in sales because the larger size companies may be able to withstand the business cycle rather

than the company of smaller size.

Stability of sales: If a firm has stable sales revenue, it will have more stable

Earnings The fall in the market share indicates the declining trend of company,

Equity Analysis even if the sales are stable. Hence the stability of sales should be compared

with its market share and the competitor’s market share.

Earnings of the company: Sales alone do not increase the earnings but the costs and expenses

of the company also influence the earnings. Further, earnings do not always increase with

increase in sales. The company’s sales might have increased but its earnings per share may

decline due to rise in costs. Hence, the investor should not only depend on the sales, but should

analyze the earnings of the company.

Financial analysis: The best source of financial information about a company is its

29



Own financial statements. This is a primary source of information for evaluating the investment

prospects in the particular company’s stock. Financial statement analysis is the study of a

company’s financial statement from various viewpoints. The statement gives the historical and

current information about the company’s operations. Historical financial statement helps to

predict the future and the current information aids to analyze the present status of the company.

The two main statements used in the analysis are Balance sheet and Profit and Loss Account.

The balance sheet is one of the financial statements that companies prepare every year for their

shareholders. It is like a financial snapshot, the company's financial situation at a moment in

time. It is prepared at the year end, listing the company's current assets and liabilities. It helps

to study the capital structure of the company. It is better for the investor to avoid a company

with excessive debt component in its capital structure.

Tools

Return, Variance and Standard Deviation

InfosysFor (NOV -2010)

TABLE – 1

SNOSNO DATEDATE CLOSECLOSE RETURNRETURN

(X)(X)X-AVGX-AVG ((X-AVG)^2X-AVG)^2

30



29-Oct-1029-Oct-10 1052.861052.86

11 1-Nov-111-Nov-11 1053.41053.4 -0.05126-0.05126 0.0888650.088865 0.0078970.007897

22 2-Nov-112-Nov-11 1049.451049.45 0.3763880.376388 -0.33879-0.33879 0.1147750.114775

33 3-Nov-113-Nov-11 1052.81052.8 -0.3182-0.3182 0.3558020.355802 0.1265950.126595

44 4-Nov-114-Nov-11 1069.151069.15 -1.52925-1.52925 1.5668551.566855 2.4550342.455034

55 5-Nov-115-Nov-11 1077.751077.75 -0.79796-0.79796 0.8355610.835561 0.6981630.69816366 8-Nov-118-Nov-11 1068.151068.15 0.898750.89875 -0.86115-0.86115 0.7415750.741575

77 9-Nov-119-Nov-11 1091.11091.1 -2.10338-2.10338 2.1409852.140985 4.5838154.583815

88 10-Nov-1110-Nov-11 1092.31092.3 2.5874622.587462 -2.54986-2.54986 6.5017826.501782

99 11-Nov-1111-Nov-11 1064.751064.75 2.5874622.587462 -2.54986-2.54986 6.5017826.501782

1010 12-Nov-1112-Nov-11 1055.91055.9 0.8381480.838148 -0.80054-0.80054 0.6408720.640872

1111 15-Nov-1115-Nov-11 10661066 -0.94747-0.94747 0.985070.98507 0.9703620.970362

1212 16-Nov-1116-Nov-11 1048.91048.9 1.6302791.630279 -1.59268-1.59268 2.5366192.536619

1313 18-Nov-1118-Nov-11 1042.81042.8 0.5849640.584964 -0.54736-0.54736 0.2996040.299604

1414 19-Nov-1119-Nov-11 1015.41015.4 2.6984442.698444 -2.66084-2.66084 7.0800777.080077

1515 22-Nov-1122-Nov-11 1039.11039.1 -2.28082-2.28082 2.3184232.318423 5.3750835.3750831616 23-Nov-1123-Nov-11 1030.051030.05 0.8785980.878598 -0.841-0.841 0.7072730.707273

1717 24-Nov-1124-Nov-11 1004.751004.75 2.5180392.518039 -2.48044-2.48044 6.1525666.152566

1818 25-Nov-1125-Nov-11 1021.81021.8 -1.66862-1.66862 1.7062271.706227 2.9112092.911209

1919 26-Nov-1126-Nov-11 1047.251047.25 -2.43017-2.43017 2.4677772.467777 6.0899236.089923

2020 29-Nov-1129-Nov-11 1071.31071.3 -2.24494-2.24494 2.2825392.282539 5.2099835.209983

2121 30-Nov-1130-Nov-11 10761076 -0.4368-0.4368 0.4744060.474406 0.2250610.225061

AVGAVG 0.0376030.037603 VARIANCEVARIANCE 2.8538122.853812

SDSD 1.68931.6893Source: national stock exchange, historical data, security wise data

Return, Variance And Standard DeviationFor (DEC- 2010)

TABLE – 2

SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2

11 1-Dec-111-Dec-11 3052.43052.4 -0.04587-0.04587 -0.52163-0.52163 0.2721020.272102

22 2-Dec-112-Dec-11 3098.53098.5 -1.48782-1.48782 0.9203170.920317 0.8469840.846984

33 3-Dec-113-Dec-11 31253125 -0.848-0.848 0.2805010.280501 0.0786810.078681

44 6-Dec-116-Dec-11 3143.43143.4 -1.10741-1.10741 0.5399060.539906 0.2914990.29149955 7-Dec-117-Dec-11 3178.63178.6 -1.10741-1.10741 0.5399060.539906 0.2914990.291499

66 8-Dec-118-Dec-11 3131.153131.15 1.5154181.515418 -2.08292-2.08292 4.3385434.338543

77 9-Dec-119-Dec-11 3151.453151.45 -0.64415-0.64415 0.0766490.076649 0.0058750.005875

88 10-Dec-1110-Dec-11 3144.253144.25 0.2289890.228989 -0.79649-0.79649 0.6343940.634394

99 13-Dec-1113-Dec-11 3145.33145.3 -0.03338-0.03338 -0.53412-0.53412 0.285280.28528

1010 14-Dec-1114-Dec-11 3158.653158.65 -0.42265-0.42265 -0.14485-0.14485 0.0209820.020982

1111 15-Dec-1115-Dec-11 3203.453203.45 -1.39849-1.39849 0.8309930.830993 0.6905490.690549

1212 16-Dec-1116-Dec-11 3293.33293.3 -2.72827-2.72827 -13.5675-13.5675 184.077184.077

1313 20-Dec-1120-Dec-11 3349.953349.95 -1.69107-1.69107 1.1235711.123571 1.2624111.262411

1414 21-Dec-1121-Dec-11 3329.253329.25 0.6217620.621762 -1.18926-1.18926 1.4143421.4143421515 22-Dec-1122-Dec-11 3332.53332.5 -0.09752-0.09752 -0.46998-0.46998 0.2208770.220877

31



1616 23-Dec-1123-Dec-11 3367.93367.9 -1.0511-1.0511 0.4836010.483601 0.233870.23387

1717 24-Dec-1124-Dec-11 3370.153370.15 -0.06676-0.06676 -0.50074-0.50074 0.2507370.250737

1818 27-Dec-1127-Dec-11 3376.93376.9 -0.19989-0.19989 -0.36761-0.36761 0.1351390.135139

1919 28-Dec-1128-Dec-11 3382.653382.65 -0.16999-0.16999 -0.39751-0.39751 0.1580180.158018

2020 29-Dec-1129-Dec-11 3404.93404.9 -0.65347-0.65347 0.0859710.085971 0.0073910.007391

2121 30-Dec-1130-Dec-11 3446.953446.95 -1.21992-1.21992 0.652420.65242 0.4256510.4256512222 31-Dec-1131-Dec-11 3442.753442.75 0.1219950.121995 -0.68949-0.68949 0.4754030.475403

AVGAVG -0.5675-0.5675 VARIANCEVARIANCE 8.9280588.928058

SDSD 2.98792.9879

Source: National Stock Exchange, Historical Data, Security Wise Data.


For (JAN-2011)

TABLE-3

SNOSNO DATEDATE CLOSECLOSE RETUENRETUEN X-AVGX-AVG (X-AVG)^2(X-AVG)^2

11 3-Jan-113-Jan-11 1158.051158.05 0.656270.65627 -0.61062-0.61062 0.3728540.372854

22 4-Jan-114-Jan-11 1144.751144.75 1.1618261.161826 -1.11617-1.11617 1.2458431.245843

33 5-Jan-115-Jan-11 1158.951158.95 -1.22525-1.22525 1.2708991.270899 1.6151851.615185

44 6-Jan-116-Jan-11 1171.71171.7 -1.08816-1.08816 1.1338151.133815 1.2855361.285536

55 7-Jan-117-Jan-11 1142.651142.65 2.5423362.542336 -2.49668-2.49668 6.2334296.233429

66 10-Jan-1110-Jan-11 1130.91130.9 1.0389951.038995 -0.99334-0.99334 0.9867310.98673177 11-Jan-1111-Jan-11 1098.51098.5 2.9494772.949477 -2.90382-2.90382 8.4321968.432196

88 12-Jan-1112-Jan-11 1135.951135.95 -3.2968-3.2968 3.3424523.342452 11.1719911.17199

99 13-Jan-1113-Jan-11 1124.251124.25 1.0406941.040694 -0.99504-0.99504 0.9901080.990108

1010 14-Jan-1114-Jan-11 1120.151120.15 0.3660220.366022 -0.32037-0.32037 0.1026370.102637

1111 17-Jan-1117-Jan-11 1137.41137.4 -1.51662-1.51662 1.5622691.562269 2.4406852.440685

1212 18-Jan-1118-Jan-11 1202.551202.55 -5.41765-5.41765 5.4633065.463306 29.8477229.84772

1313 19-Jan-1119-Jan-11 11931193 0.8005030.800503 -0.75485-0.75485 0.56980.5698

1414 20-Jan-1120-Jan-11 1212.21212.2 -1.5839-1.5839 1.6295491.629549 2.6554312.655431

1515 21-Jan-1121-Jan-11 1211.651211.65 0.0453930.045393 0.000260.00026 6.74E-086.74E-08

1616

24-Jan-1124-Jan-11

1209.251209.25

0.198470.19847

-0.15282-0.15282

0.0233530.023353

1717 25-Jan1125-Jan11 1188.551188.55 1.7416181.741618 -1.69597-1.69597 2.87632.8763

1818 27-Jan-1127-Jan-11 1199.41199.4 -0.90462-0.90462 0.9502710.950271 0.9030150.903015

1919 28-Jan-1128-Jan-11 1181.351181.35 1.5279131.527913 -1.48226-1.48226 2.1970972.197097

2020 31-Jan-1131-Jan-11 1159.591159.59 1.8765251.876525 -1.83087-1.83087 3.3520963.352096


SDSD 1.96591.9659


32



Return, Variance and Standard DeviationFor (FEB-2011)

Table No-4


11 1-Feb-111-Feb-11 3089.23089.2 2.864812.86481 -2.56142-2.56142 6.5608896.560889

22 2-Feb-112-Feb-11 3089.253089.25 -0.00162-0.00162 0.3050050.305005 0.0930280.093028

33 3-Feb-113-Feb-11 3117.63117.6 -0.90935-0.90935 1.212741.21274 1.4707391.470739

44 4-Feb-114-Feb-11 3047.93047.9 2.286822.28682 -1.98343-1.98343 3.9340093.934009

55 7-Feb-117-Feb-11 3087.453087.45 -1.28099-1.28099 1.5843791.584379 2.5102572.510257

66 8-Feb-118-Feb-11 30963096 -0.27616-0.27616 0.579550.57955 0.3358780.335878

77 9-Feb-119-Feb-11 3130.73130.7 -1.10838-1.10838 1.4117651.411765 1.9930811.993081

88 10-Feb-1110-Feb-11 3053.23053.2 2.538322.53832 -2.23493-2.23493 4.9949294.994929

99 11-Feb-1111-Feb-11 3040.853040.85 0.4061360.406136 -0.10275-0.10275 0.0105570.010557

1010 14-Feb-1114-Feb-11 3104.553104.55 -2.05183-2.05183 2.3552142.355214 5.5470335.547033

1111 15-Feb-1115-Feb-11 3106.553106.55 -0.06438-0.06438 0.3677670.367767 0.1352520.135252

1212 16-Feb-1116-Feb-11 3103.033103.03 0.1134380.113438 0.1899490.189949 0.0360810.036081

1313 17-Feb-1117-Feb-11 3113.353113.35 -0.33148-0.33148 0.6348630.634863 0.403050.40305

1414 18-Feb-1118-Feb-11 3100.33100.3 0.4209270.420927 -0.11754-0.11754 0.0138160.013816

1515 21-Feb-1121-Feb-11 3165.253165.25 -2.05197-2.05197 2.3553572.355357 5.5477085.547708

1616 22-Feb-1122-Feb-11 3141.853141.85 0.7447840.744784 -0.4414-0.4414 0.1948320.194832

1717 23-Feb-1123-Feb-11 3078.83078.8 2.0478762.047876 -1.74449-1.74449 3.0432423.043242

1818 24-Feb-1124-Feb-11 3003.83003.8 2.4968372.496837 -2.19345-2.19345 4.8112254.811225

1919 25-Feb-1125-Feb-11 3007.33007.3 -0.11638-0.11638 0.419770.41977 0.1762070.176207

2020 28-Feb-1128-Feb-11 2997.12997.1 0.3403290.340329 -0.03694-0.03694 0.0013650.001365AVGAVG 0.3033870.303387 VARIANCEVARIANCE 2.0906592.090659

SDSD 1.44591.4459

Source: National Stock Exchange, Historical Data, Security wise data

Return, Variance and Standard DeviationFOR (MAR-2011)

TABLE NO-5


11 1-Mar-111-Mar-11 3082.43082.4 -2.76732-2.76732 2.4102252.410225 5.8091845.809184

22 3-Mar-113-Mar-11 3026.13026.1 1.860481.86048 -2.21758-2.21758 4.9176414.917641

33 4-Mar-114-Mar-11 3062.23062.2 -1.17889-1.17889 0.8217960.821796 0.6753490.675349

44 8-Mar-118-Mar-11 3116.33116.3 -1.73603-1.73603 1.3789381.378938 1.901471.90147

55 9-Mar-119-Mar-11 3095.53095.5 0.6719430.671943 -1.02904-1.02904 1.058921.05892

33



66 10-Mar-1110-Mar-11 3090.253090.25 0.1698890.169889 -0.52698-0.52698 0.2777120.277712

77 11-Mar-1111-Mar-11 3053.93053.9 1.1902811.190281 -1.54738-1.54738 2.3943742.394374

88 14-Mar-1114-Mar-11 3100.83100.8 -1.51251-1.51251 1.1554181.155418 1.334991.33499

99 15-Mar-1115-Mar-11 3030.153030.15 2.3315682.331568 -2.68866-2.68866 7.2289087.228908

1010 16-Mar-1116-Mar-11 3030.93030.9 -0.02475-0.02475 -0.33235-0.33235 0.1104560.110456

1111 17-Mar-1117-Mar-11 2978.92978.9 1.7456111.745611 -2.10271-2.10271 4.4213724.4213721212 18-Mar-1118-Mar-11 2941.12941.1 1.2852331.285233 -1.64233-1.64233 2.6972432.697243

1313 21-Mar-1121-Mar-11 2922.32922.3 0.6433290.643329 -1.00042-1.00042 1.0008481.000848

1414 22-Mar-1122-Mar-11 2943.052943.05 -0.70505-0.70505 -0.70505-0.70505 0.4970970.497097

1515 23-Mar-1123-Mar-11 2993.352993.35 -1.68039-1.68039 -1.68039-1.68039 2.8237162.823716

1616 24-Mar-1124-Mar-11 3002.83002.8 -0.31471-0.31471 -0.31471-0.31471 0.099040.09904

1717 25-Mar-1125-Mar-11 3163.053163.05 -5.06631-5.06631 -5.06631-5.06631 25.6675225.66752

1818 28-Mar-1128-Mar-11 3139.553139.55 0.7485150.748515 0.7485150.748515 0.5602750.560275

1919 29-Mar-1129-Mar-11 3173.353173.35 -1.06512-1.06512 -1.06512-1.06512 1.1344821.134482

2020 30-Mar-1130-Mar-11 3170.93170.9 0.0772050.077205 0.0772650.077265 0.005970.00597

2121 31-Mar-1131-Mar-11 3241.33241.3 -2.17197-2.17197 -2.17197-2.17197 4.7174454.717445AVGAVG -0.3571-0.3571 VARIANCEVARIANCE 3.301623.30162

SDSD 1.8168651.816865



For (APRIL-2011)

Table No-6

SN0SN0 DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2

11 1-Apr -111-Apr-11 3218.153218.15 0.7193570.719357 -0.08637665-0.08637665 0.0074610.007461

22 4-Apr-114-Apr-11 3283.153283.15 -1.97981-1.97981 2.6127863332.612786333 6.8266526.826652

33 5-Apr-115-Apr-11 3283.253283.25 -0.00305-0.00305 0.6360261170.636026117 0.4045290.40452944 6-Apr-116-Apr-11 3275.153275.15 0.2473170.247317 0.3856634380.385663438 0.1487360.148736

55 7-Apr-117-Apr-11 3245.93245.9 0.9011370.901137 -0.26815646-0.26815646 0.0719080.071908

66 8-Apr-118-Apr-11 3227.33227.3 0.5763330.576333 0.0566471970.056647197 0.0032090.003209

77 11-Apr-1111-Apr-11 3241.63241.6 -0.44114-0.44114 1.0741205321.074120532 1.1537351.153735

88 13-Apr-1113-Apr-11 3306.23306.2 -1.9539-1.9539 2.5868851392.586885139 6.6919756.691975

99 15-Apr-1115-Apr-11 3289.53289.5 -0.50768-0.50768 1.1406562931.140656293 1.3010971.301097

1010 18-Apr-1118-Apr-11 2906.12906.1 13.1929413.19294 -12.5599586-12.5599586 157.7526157.7526

1111 19-Apr-1119-Apr-11 2887.352887.35 0.6493840.649384 -0.01640403-0.01640403 0.0002690.000269

1212 20-Apr-1120-Apr-11 2907.32907.3 -0.6862-0.6862 1.3191840491.319184049 1.7402471.740247

1313 21-Apr-1121-Apr-11 29102910 -0.09278-0.09278 0.725763860.72576386 0.5267330.5267331414 25-Apr-1125-Apr-11 2941.32941.3 -1.06416-1.06416 1.697135661.69713566 2.8802692.880269

34



1515 26-Apr-1126-Apr-11 2942.352942.35 -0.03569-0.03569 0.6686661160.668666116 0.4471140.447114

1616 28-Apr-1128-Apr-11 2929.152929.15 0.4506430.450643 0.1823376770.182337677 0.0332470.033247

1717 29-Apr-1129-Apr-11 2906.252906.25 0.7879570.787957 -0.15497663-0.15497663 0.0240180.024018

AVGAVG 0.632980.63298 VAIRANCEVAIRANCE 10.5890410.58904

SDSD 3.254083.25408


Monthly Average Return, Variance and Standard Deviation

(NOV2010-APRIL2011)

Table No-7

MONTHMONTH RETURNRETURN VARIANCEVARIANCE SDSD

NOV NOV -0.1-0.1 1.81.8 1.31.3

DECDEC -0.5-0.5 8.98.9 2.92.9

JANJAN 0.40.4 3.63.6 1.91.9FEBFEB 0.30.3 22 1.41.4

MAR MAR -0.3-0.3 3.33.3 1.81.8

APR APR 0.60.6 10.510.5 3.23.2

RETURN (X)

MONTHLY RETURNS

35



Interpretation: During Nov2010- April 2011 return on Infosys stock varies between -01 to 0.6, and the risk for

the same period varies between 1.8 to 10.5. Lowest volatility was found in the month

December 2010, where the return is lowest in the study period and the risk is very high. The

reasons for this may be the investor’s expectation towards the financial performance of the

company. Investors may be expecting lesser profits.

Variance

Variance

Interpretation:

During NOV 2010-APRIL 2011 variance on Infosys stock varies between 1.8 to 10.5, and the

risk for the same period varies between return -0.1 –0.6, the Highest volatility was found in the

month of April -2011, the reasons for this may be the investor’s expectation towards the

financial performance of the company. Investor 'may be expecting lesser profits.

36



Standard Deviation

Standard Deviation

Interpretation:

During NOV 2010- APRIL 2011 Standard Deviation on Infosys stock varies between 1.3

to 3.2 and the risk for same period varies between 1.8 to 10.5. the highest volatility was found

in month of April 2011, where the return is lowest in the study period and the risk is very high.

The reasons for this may be the investor’s expectations towards the financial performance of

the company.

37




Tcs LtdFor (N0V -2010)

Table no -8

SNOSNO DATEDATE CLOSECLOSE RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2

29-Oct-1029-Oct-10 1052.861052.86

11 1-Nov-101-Nov-10 1053.41053.4 -0.05126-0.05126 0.0888650.088865 0.0078970.007897

22 2-Nov-102-Nov-10 1049.451049.45 0.3763880.376388 -0.33879-0.33879 0.1147750.114775

33 3-Nov-103-Nov-10 1052.81052.8 -0.3182-0.3182 0.3558020.355802 0.1265950.126595

44 4-Nov-104-Nov-10 1069.151069.15 -1.52925-1.52925 1.5668551.566855 2.4550342.455034

55 5-Nov-105-Nov-10 1077.751077.75 -0.79796-0.79796 0.8355610.835561 0.6981630.698163

66 8-Nov-108-Nov-10 1068.151068.15 0.898750.89875 -0.86115-0.86115 0.7415750.741575

77 9-Nov-109-Nov-10 1091.11091.1 -2.10338-2.10338 2.1409852.140985 4.5838154.583815

88 10-Nov-1010-Nov-10 1092.31092.3 2.5874622.587462 -2.54986-2.54986 6.5017826.50178299 11-Nov-1011-Nov-10 1064.751064.75 2.5874622.587462 -2.54986-2.54986 6.5017826.501782

1010 12-Nov-1012-Nov-10 1055.91055.9 0.8381480.838148 -0.80054-0.80054 0.6408720.640872

1111 15-Nov-1015-Nov-10 10661066 -0.94747-0.94747 0.985070.98507 0.9703620.970362

1212 16-Nov-1016-Nov-10 1048.91048.9 1.6302791.630279 -1.59268-1.59268 2.5366192.536619

1313 18-Nov-1018-Nov-10 1042.81042.8 0.5849640.584964 -0.54736-0.54736 0.2996040.299604

1414 19-Nov-1019-Nov-10 1015.41015.4 2.6984442.698444 -2.66084-2.66084 7.0800777.080077

1515 22-Nov-1022-Nov-10 1039.11039.1 -2.28082-2.28082 2.3184232.318423 5.3750835.375083

1616 23-Nov-1023-Nov-10 1030.051030.05 0.8785980.878598 -0.841-0.841 0.7072730.707273

1717 24-Nov-1024-Nov-10 1004.751004.75 2.5180392.518039 -2.48044-2.48044 6.1525666.152566

1818 25-Nov-1025-Nov-10 1021.81021.8 -1.66862-1.66862 1.7062271.706227 2.9112092.9112091919 26-Nov-1026-Nov-10 1047.251047.25 -2.43017-2.43017 2.4677772.467777 6.0899236.089923

2020 29-Nov-1029-Nov-10 1071.31071.3 -2.24494-2.24494 2.2825392.282539 5.2099835.209983

2121 30-Nov-1030-Nov-10 10761076 -0.4368-0.4368 0.4744060.474406 0.2250610.225061


SDSD 1.68931.6893



38



For (DEC-2010)

Table No-9


11 1-Dec-101-Dec-10 1081.91081.9 -0.54533-0.54533 0.935670.93567 0.8754790.87547922 2-Dec-102-Dec-10 1095.81095.8 -1.26848-1.26848 0.911420.91142 0.8306870.830687

33 3-Dec-103-Dec-10 1099.351099.35 -0.32292-0.32292 -0.03414-0.03414 0.0011660.001166

44 6-Dec-106-Dec-10 1101.71101.7 -0.21331-0.21331 -0.14375-0.14375 0.0206650.020665

55 7-Dec-107-Dec-10 1087.51087.5 1.3057471.305747 -1.66281-1.66281 2.7649252.764925

66 8-Dec-108-Dec-10 1079.151079.15 0.7737570.773757 -1.13082-1.13082 1.2787461.278746

77 9-Dec-109-Dec-10 1072.61072.6 0.6106660.610666 -0.96772-0.96772 0.9364920.936492

88 10-Dec-1010-Dec-10 1074.91074.9 -0.21397-0.21397 -0.14309-0.14309 0.0204740.020474

99 13-Dec-1013-Dec-10 1076.11076.1 -0.11151-0.11151 -0.24555-0.24555 0.0602930.060293

1010 14-Dec-1014-Dec-10 1080.951080.95 -0.44868-0.44868 0.091620.09162 0.0083940.008394

1111 15-Dec-1015-Dec-10 1103.651103.65 -2.05681-2.05681 1.6997521.699752 2.8891582.8891581212 16-Dec-1016-Dec-10 1140.71140.7 -3.24801-3.24801 2.8909462.890946 8.3575718.357571

1313 20-Dec-1020-Dec-10 1166.71166.7 -2.22851-2.22851 1.8714481.871448 3.5023193.502319

1414 21-Dec-1021-Dec-10 1160.81160.8 0.508270.50827 -0.86533-0.86533 0.7487950.748795

1515 22-Dec-1022-Dec-10 1149.751149.75 0.9610780.961078 -1.31814-1.31814 1.7374871.737487

1616 23-Dec-1023-Dec-10 11401140 0.8552630.855263 -1.21232-1.21232 1.4697261.469726

1717 24-Dec-1024-Dec-10 1141.11141.1 -0.0964-0.0964 -0.26066-0.26066 0.0679440.067944

1818 27-Dec-1027-Dec-10 1141.21141.2 -0.00876-0.00876 -0.3483-0.3483 0.1213110.121311

1919 28-Dec-1028-Dec-10 1146.351146.35 -0.44925-0.44925 0.0921930.092193 0.0084990.008499

2020 29-Dec-1029-Dec-10 1156.951156.95 -0.9162-0.9162 0.5591430.559143 0.3126410.312641

2121 30-Dec-1030-Dec-10 1170.21170.2 -1.13229-1.13229 0.7752260.775226 0.6009750.600975

2222 31-Dec-1031-Dec-10 1165.651165.65 0.390340.39034 -0.7474-0.7474 0.5586060.558606


SDSD 1.11131.1113


For (JAN-2011)

Table No -10

SNOSNO DATEDATE CLOSECLOSE RETUENRETUEN X-AVGX-AVG (X-AVG)^2(X-AVG)^2

11 3-Jan-113-Jan-11 1158.051158.05 0.656270.65627 -0.61062-0.61062 0.3728540.372854

22 4-Jan-114-Jan-11 1144.751144.75 1.1618261.161826 -1.11617-1.11617 1.2458431.245843

33 5-Jan-115-Jan-11 1158.951158.95 -1.22525-1.22525 1.2708991.270899 1.6151851.615185

44 6-Jan-116-Jan-11 1171.71171.7 -1.08816-1.08816 1.1338151.133815 1.2855361.285536

55 7-Jan-117-Jan-11 1142.651142.65 2.5423362.542336 -2.49668-2.49668 6.2334296.233429

66 10-Jan-1110-Jan-11 1130.91130.9 1.0389951.038995 -0.99334-0.99334 0.9867310.98673177 11-Jan-1111-Jan-11 1098.51098.5 2.9494772.949477 -2.90382-2.90382 8.4321968.432196

39



88 12-Jan-1112-Jan-11 1135.951135.95 -3.2968-3.2968 3.3424523.342452 11.1719911.17199

99 13-Jan-1113-Jan-11 1124.251124.25 1.0406941.040694 -0.99504-0.99504 0.9901080.990108

1010 14-Jan-1114-Jan-11 1120.151120.15 0.3660220.366022 -0.32037-0.32037 0.1026370.102637

1111 17-Jan-1117-Jan-11 1137.41137.4 -1.51662-1.51662 1.5622691.562269 2.4406852.440685

1212 18-Jan-1118-Jan-11 1202.551202.55 -5.41765-5.41765 5.4633065.463306 29.8477229.84772

1313 19-Jan-1119-Jan-11 11931193 0.8005030.800503 -0.75485-0.75485 0.56980.56981414 20-Jan-1120-Jan-11 1212.21212.2 -1.5839-1.5839 1.6295491.629549 2.6554312.655431

1515 21-Jan-1121-Jan-11 1211.651211.65 0.0453930.045393 0.000260.00026 6.74E-086.74E-08

1616 24-Jan-1124-Jan-11 1209.251209.25 0.198470.19847 -0.15282-0.15282 0.0233530.023353

1717 25-Jan-1125-Jan-11 1188.551188.55 1.7416181.741618 -1.69597-1.69597 2.87632.8763

1818 27-Jan-1127-Jan-11 1199.41199.4 -0.90462-0.90462 0.9502710.950271 0.9030150.903015

1919 28-Jan-1128-Jan-11 1181.351181.35 1.5279131.527913 -1.48226-1.48226 2.1970972.197097

2020 31-Jan-1131-Jan-11 1159.591159.59 1.8765251.876525 -1.83087-1.83087 3.3520963.352096


SDSD 1.96591.9659

Source: National Stock exchange, Historical Data, Security Wise Data.


For (FEB-11)

Table No-11


11 1-Feb-111-Feb-11 1150.151150.15 0.820760.82076 -0.58867-0.58867 0.346530.34653

22 2-Feb-112-Feb-11 1182.451182.45 -2.73162-2.73162 2.9637092.963709 8.783578.78357

33 3-Feb-113-Feb-11 1183.71183.7 -0.1056-0.1056 0.3376930.337693 0.1140370.114037

44 4-Feb-114-Feb-11 1148.81148.8 3.0379533.037953 -2.80586-2.80586 7.8728527.872852

55 7-Feb-117-Feb-11 1131.151131.15 1.5603591.560359 -1.32827-1.32827 1.7642921.764292

66 8-Feb-118-Feb-11 1125.11125.1 0.537730.53773 -0.30564-0.30564 0.0934140.093414

77 9-Feb-119-Feb-11 1098.31098.3 2.4401352.440135 -2.20804-2.20804 4.8754514.87545188 10-Feb-1110-Feb-11 1090.751090.75 0.6921840.692184 -0.46009-0.46009 0.2116850.211685

99 11-Feb-1111-Feb-11 1089.61089.6 0.1055430.105543 0.1265490.126549 0.0160150.016015

1010 14-Feb-1114-Feb-11 1112.31112.3 -2.04082-2.04082 2.2729092.272909 5.1661145.166114

1111 15-Feb-1115-Feb-11 1097.71097.7 1.3300541.330054 -1.09796-1.09796 1.2055191.205519

1212 16-Feb-1116-Feb-11 1096.51096.5 0.1094390.109439 0.1226530.122653 0.0150440.015044

1313 17-Feb-1117-Feb-11 1109.21109.2 -1.14497-1.14497 1.3770621.377062 1.8962991.896299

1414 18-Feb-1118-Feb-11 1089.71089.7 1.7894831.789483 -1.55739-1.55739 2.4254672.425467

1515 21-Feb-1121-Feb-11 1138.61138.6 -4.29475-4.29475 4.526844.52684 20.4922820.49228

1616 22-Feb-1122-Feb-11 1138.751138.75 -0.01317-0.01317 0.2452650.245265 0.0601550.060155

1717 23-Feb-1123-Feb-11 1125.551125.55 1.172761.17276 -0.94067-0.94067 0.8848560.884856

1818 24-Feb-1124-Feb-11 1111.81111.8 1.2367331.236733 -1.00464-1.00464 1.0093031.009303

40



1919 25-Feb-1125-Feb-11 1110.051110.05 0.1576510.157651 -0.15765-0.15765 0.0248540.024854

2020 28-Feb-1128-Feb-11 1110.251110.25 -0.01801-0.01801 0.2501060.250106 0.0625530.062553


SDSD 1.69231.6923


Return, Variance and Standard DeviationFor (MAR-2010)

Table No-12


11 1-Mar-111-Mar-11 1124.51124.5 -1.26722-1.26722 0.9779690.977969 0.9564230.956423

22 3-Mar-113-Mar-11 1150.21150.2 -2.23439-2.23439 1.9451431.945143 3.783583.78358

33 4-Mar-114-Mar-11 1135.551135.55 1.2901241.290124 -1.57938-1.57938 2.4944262.494426

44 7-Mar-117-Mar-11 1108.251108.25 2.4633432.463343 -2.75259-2.75259 7.5767777.576777

55 8-Mar-118-Mar-11 1117.71117.7 -0.84549-0.84549 0.5562350.556235 0.3093970.309397

66 9-Mar-119-Mar-11 1126.71126.7 -0.79879-0.79879 0.5095420.509542 0.2596330.259633

77 10-Mar-1110-Mar-11 1108.551108.55 1.6372741.637274 -1.92653-1.92653 3.71153.7115

88 11-Mar-1111-Mar-11 1077.051077.05 2.9246552.924655 -3.21391-3.21391 10.329210.3292

99 14-Mar-1114-Mar-11 1097.551097.55 -1.8678-1.8678 1.5785451.578545 2.4918052.4918051010 15-Mar-1115-Mar-11 1089.81089.8 0.711140.71114 -1.00039-1.00039 1.0007821.000782

1111 16-Mar-1116-Mar-11 1114.851114.85 -2.24694-2.24694 1.9576881.957688 3.8325413.832541

1212 17-Mar-1117-Mar-11 10981098 1.5346081.534608 -1.82386-1.82386 3.3264643.326464

1313 18-Mar-1118-Mar-11 1082.751082.75 1.4084511.408451 -1.6977-1.6977 2.8821922.882192

1414 21-Mar-1121-Mar-11 1070.851070.85 1.1112671.111267 -1.40052-1.40052 1.9614511.961451

1515 22-Mar-1122-Mar-11 1069.51069.5 0.1262270.126227 -0.41548-0.41548 0.1726220.172622

1616 23-Mar-1123-Mar-11 1064.351064.35 0.4838630.483863 -0.77311-0.77311 0.5977060.597706

1717 24-Mar-1124-Mar-11 1093.41093.4 -2.65685-2.65685 2.3675992.367599 5.6055245.605524

1818 25-Mar-1125-Mar-11 1119.651119.65 -2.34448-2.34448 2.0552312.055231 4.2239764.223976

1919 28-Mar-1128-Mar-11 1119.91119.9 -0.02232-0.02232 -0.26693-0.26693 0.0712510.0712512020 30-Mar-1130-Mar-11 1151.951151.95 -2.78224-2.78224 2.4929872.492987 6.2149866.214986

2121 31-Mar-1131-Mar-11 1183.91183.9 -2.69871-2.69871 2.4094562.409456 5.8054795.805479

AVGAVG -0.28925-0.28925 VAIRANCEVAIRANCE 3.2194153.219415

SDSD 1.7942721.794272


41




For (APRIL-2011)

Table No-13


11 1-Apr-111-Apr-11 1180.151180.15 0.317750.31775 -0.18488-0.18488 0.034180.03418

22 4-Apr -114-Apr-11 1213.21213.2 -2.7242-2.7242 2.8570732.857073 8.1628688.162868

33 5-Apr-115-Apr-11 1239.851239.85 -2.14945-2.14945 2.2823262.282326 5.2090145.209014

44 6-Apr-116-Apr-11 1211.851211.85 2.3105172.310517 -2.17764-2.17764 4.7421344.742134

55 7-Apr-117-Apr-11 1199.21199.2 1.054871.05487 -0.922-0.922 0.8500780.850078

66 8-Apr-118-Apr-11 11961196 0.2675590.267559 -0.13469-0.13469 0.018140.01814

77 11-Apr-1111-Apr-11 1178.11178.1 1.5193961.519396 -1.38652-1.38652 1.9224451.922445

88 13-Apr-1113-Apr-11 1270.11270.1 -7.24352-7.24352 7.3763977.376397 54.4112354.41123

99 15-Apr-1115-Apr-11 1191.41191.4 6.6056746.605674 -6.4728-6.4728 41.8971541.897151010 18-Apr-1118-Apr-11 1144.61144.6 4.0887654.088765 -3.95589-3.95589 15.6490815.64908

1111 19-Apr-1119-Apr-11 1164.71164.7 -1.72577-1.72577 1.8586391.858639 3.454543.45454

1212 20-Apr-1120-Apr-11 1218.71218.7 -4.43095-4.43095 4.5638244.563824 20.8284920.82849

1313 21-Apr-1121-Apr-11 1192.11192.1 2.2313562.231356 -2.09848-2.09848 4.4036334.403633

1414 25-Apr-1125-Apr-11 1197.851197.85 -0.48003-0.48003 0.61290.6129 0.3756460.375646

1515 26-Apr-1126-Apr-11 11891189 0.7443230.744323 -0.61145-0.61145 0.3738710.373871

1616 27-Apr-1127-Apr-11 1180.61180.6 0.7115030.711503 -0.57863-0.57863 0.3348120.334812

1717 28-Apr-1128-Apr-11 1158.651158.65 1.8944461.894446 -1.76157-1.76157 3.103143.10314

1818 29-Apr-1129-Apr-11 1165.651165.65 -0.60052-0.60052 0.7333960.733396 0.537870.53787

AVGAVG

0.1328730.132873

VAIRANCEVAIRANCE

9.2393529.239352

SDSD 3.039633.03963


Monthly Average Return, Variance and Standard Deviation of Tcs Ltd

(NOV2010-APRIL2011)

MONTHMONTH RETURNRETURN VAIRANCEVAIRANCE SDSD

NOV NOV 0.030.03 2.82.8 1.61.6

DECDEC -0.3-0.3 1.21.2 1.11.1

JANJAN 0.040.04 3.83.8 1.91.9

42



FEBFEB 0.230.23 2.82.8 1.61.6

MAR MAR -0.2-0.2 3.23.2 1.71.7

APR APR 0.10.1 9.29.2 3.033.03

Return (x)

Monthly Returns

Interpretation:

During NOV2010- APRIL 2011 return on TCS LTD stock varies between 0.03 to 0.1 and the

risk for the same period varies between 2.8 to 9.2. the highest volatility was found in the

month of February 11 where the lowest in the study period and the risk is very high . the

reasons for this may be the investor’s expectation towards the financial performance of the

company.

Variance

Variance

43



Interpretation:

During NOV 2010-APRIL 2011 variance on TCS LTD stock varies between 2.8 to

9.2, and the return for the same period is 0.03 to 0.1. the highest volatility was found in the

month of Feb. the reasons for this may be the investor’s expectation towards the financial

performance of the company.

Standard Deviation

SD

44



Interpretation:

During NOV 2010 – APR 2011 Standard deviation on TCS LTS stock varies between 1.6

to 0.03 and the risk for the same period varies between 2.8 to 9.2. The highest volatility was

found in the month of Feb 2011 where the return is lowest in the study period and the risk is

very high. The reasons for this may be the investor’s expectation towards the financial



Wipro ltd

For (NOV-2010)Table No-15

45



SNOSNO DATEDATE CLOSECLOSE RETURN(X)RETURN(X) X-AVGX-AVG (X-AVG)^2(X-AVG)^2

29-Oct-1029-Oct-10 419.75419.75

11 1-Nov-101-Nov-10 423.7423.7 0.9410360.941036 -0.96199-0.96199 0.925420.92542

22 2-Nov-102-Nov-10 433.85433.85 2.3955632.395563 -2.41651-2.41651 5.839545.8395433 3-Nov-103-Nov-10 434.7434.7 0.195920.19592 -0.21687-0.21687 0.0470330.047033

44 4-Nov-104-Nov-10 436.75436.75 -0.29677-0.29677 0.2758190.275819 0.0760760.076076

55 5-Nov-105-Nov-10 438.05438.05 0.2976530.297653 0.2758190.275819 0.0760760.076076

66 6-Nov-106-Nov-10 431.2431.2 -1.56375-1.56375 1.5427971.542797 2.3802232.380223

77 7-Nov-107-Nov-10 431.65431.65 0.104360.10436 -0.12531-0.12531 0.0157030.015703

88 8-Nov-108-Nov-10 436.55436.55 1.1351791.135179 -1.15613-1.15613 1.3366371.336637

99 9-Nov-109-Nov-10 428.65428.65 -1.80964-1.80964 1.7886931.788693 3.1994213.199421

1010 10-Nov-1010-Nov-10 425.2425.2 -0.80485-0.80485 0.7839010.783901 0.6145010.614501

1111 11-Nov-1011-Nov-10 433.2433.2 1.8814681.881468 -1.90242-1.90242 3.6191973.619197

1212 12-Nov-1012-Nov-10 421.75421.75 -2.64312-2.64312 2.622172.62217 6.8757746.875774

1313 13-Nov-1013-Nov-10 418.4418.4 -0.79431-0.79431 0.7733580.773358 0.5980830.598083

1414 14-Nov-1014-Nov-10 400.85400.85 -4.19455-4.19455 4.1735994.173599 17.4189317.41893

1515 15-Nov-1015-Nov-10 418.3418.3 4.3532494.353249 -4.3742-4.3742 19.1336319.13363

1616 23-Nov-1023-Nov-10 417.05417.05 -0.29883-0.29883 0.2778770.277877 0.0772160.077216

1717 24-Nov-1024-Nov-10 409.7409.7 -1.76238-1.76238 1.7414271.741427 3.0325693.032569

1818 25-Nov-1025-Nov-10 406.25406.25 -0.84208-0.84208 0.8211280.821128 0.6742520.674252

1919 26-Nov-1026-Nov-10 407.5407.5 0.3076920.307692 -0.32864-0.32864 0.1080070.108007

2020 27-Nov-1027-Nov-10 417.75417.75 2.5153372.515337 -2.53629-2.53629 6.432766.43276

2121 28-Nov-1028-Nov-10 419.6419.6 0.4428490.442849 -0.4638-0.4638 0.215110.21511


SDSD 1.861.86


Return, Variance and Standard DeviationFor (DEC-2010)

Table No-16


11 1-Dec-111-Dec-11 414.72414.72 1.171.17 -1.87673-1.87673 3.522113.52211

22 2-Dec-112-Dec-11 426.05426.05 -2.65931-2.65931 1.9525841.952584 3.8125843.812584

33 3-Dec-113-Dec-11 427.6427.6 -0.36249-0.36249 -0.34424-0.34424 0.1185010.118501

44 6-Dec-116-Dec-11 430.65430.65 -0.70823-0.70823 0.0015030.001503 2.26E-062.26E-06

55 7-Dec-117-Dec-11 434.95434.95 -0.98862-0.98862 0.2818910.281891 0.0794620.079462

66 8-Dec-118-Dec-11 435.3435.3 -0.0804-0.0804 -0.62632-0.62632 0.3922820.392282

77 9-Dec-119-Dec-11 437.1437.1 -0.41181-0.41181 -0.29492-0.29492 0.086980.08698

88 10-Dec-1110-Dec-11 450.95450.95 -3.07129-3.07129 2.3645652.364565 5.591175.59117

99 13-Dec-1113-Dec-11 448.15448.15 0.6247910.624791 -1.33152-1.33152 1.7729441.772944

1010 14-Dec-1114-Dec-11 454.4454.4 -1.37544-1.37544 0.6687120.668712 0.4471750.447175

1111 15-Dec-1115-Dec-11 458.4458.4 -0.8726-0.8726 0.1658720.165872 0.0275130.027513

46



1212 16-Dec-1116-Dec-11 470.05470.05 -2.47846-2.47846 1.7717311.771731 3.1390323.139032

1313 20-Dec-1120-Dec-11 477.6477.6 -1.58082-1.58082 0.8740920.874092 0.7640370.764037

1414 21-Dec-1121-Dec-11 485.5485.5 -1.62719-1.62719 0.920460.92046 0.8472470.847247

1515 22-Dec-1122-Dec-11 477.3477.3 1.7179971.717997 -2.42473-2.42473 5.8792945.879294

1616 23-Dec-1123-Dec-11 479.5479.5 -0.45881-0.45881 -0.24792-0.24792 0.0614630.061463

1717 24-Dec-1124-Dec-11 489.45489.45 -2.03289-2.03289 1.3261661.326166 1.7587151.7587151818 27-Dec-1127-Dec-11 485.1485.1 0.8967220.896722 -1.60345-1.60345 2.5710542.571054

1919 28-Dec-1128-Dec-11 491.35491.35 -1.27201-1.27201 0.5652770.565277 0.3195380.319538

2020 29-Dec-1129-Dec-11 488.5488.5 0.5834190.583419 -1.29015-1.29015 1.664481.66448

2121 30-Dec-1130-Dec-11 489.95489.95 -0.29595-0.29595 -0.41078-0.41078 0.168740.16874

2222 31-Dec-1131-Dec-11 491.25491.25 -0.26463-0.26463 -0.4421-0.4421 0.195450.19545


SDSD 1.2281.228


Return, Variance and Standard DeviationFor (Jan-2011)

Table No-17

SNOSNO DATEDATE closingclosing returnreturn x-avgx-avg (x-avg)^2(x-avg)^2

11 3-Jan-113-Jan-11 483.05483.05 1.6975471.697547 -1.108-1.108 1.2276551.227655

22 4-Jan-114-Jan-11 484.65484.65 -0.33014-0.33014 0.9196860.919686 0.8458220.84582233 5-Jan-115-Jan-11 485.65485.65 -0.20591-0.20591 0.795460.79546 0.6327570.632757

44 6-Jan-116-Jan-11 486.35486.35 -0.14393-0.14393 0.733480.73348 0.5379930.537993

55 7-Jan-117-Jan-11 476.95476.95 1.9708561.970856 -1.38131-1.38131 1.9080061.908006

66 10-Jan-1110-Jan-11 464.6464.6 2.6582012.658201 -2.06865-2.06865 4.2793124.279312

77 11-Jan-1111-Jan-11 467.45467.45 -0.60969-0.60969 1.1992421.199242 1.438181.43818

88 12-Jan-1112-Jan-11 467.7467.7 -0.05345-0.05345 0.6430040.643004 0.4134540.413454

99 13-Jan-1113-Jan-11 453.55453.55 3.1198323.119832 -2.53028-2.53028 6.4023266.402326

1010 14-Jan-1114-Jan-11 463.1463.1 -2.06219-2.06219 2.651742.65174 7.0317277.031727

1111 17-Jan-1117-Jan-11 466.75466.75 -0.782-0.782 1.3715541.371554 1.881161.88116

1212 18-Jan-1118-Jan-11 478.55478.55 -2.46578-2.46578 3.0553333.055333 9.3350589.335058

1313 19-Jan-1119-Jan-11 476.1476.1 0.5145980.514598 0.0749530.074953 0.0056180.005618

1414 20-Jan-1120-Jan-11 477.5477.5 -0.29319-0.29319 0.8827440.882744 0.7792380.779238

1515 21-Jan-1121-Jan-11 455.95455.95 4.7263954.726395 -4.13684-4.13684 17.1134817.11348

1616 24-Jan-1124-Jan-11 443.9443.9 2.7145752.714575 -2.12502-2.12502 4.515734.51573

1717 25-Jan-1125-Jan-11 446.9446.9 -0.67129-0.67129 1.2608421.260842 1.5897221.589722

1818 27-Jan-1127-Jan-11 438.65438.65 1.8807711.880771 -1.29122-1.29122 1.6672491.667249

1919 28-Jan-1128-Jan-11 437.6437.6 0.2399450.239945 0.3496060.349606 0.1222240.122224

2020 31-Jan-1131-Jan-11 438.1438.1 -0.11413-0.11413 0.703680.70368 0.4951650.495165


SDSD 1.7631.763

Source: National Stock exchange, Historical Data, Security Wise Data

47



Return, Variance and Standard DeviationFor (FEB-2011)

Table No-18


11 1-Feb-111-Feb-11 429.35429.35 2.0379642.037964 -2.14549-2.14549 4.603134254.60313425

22 2-Feb-112-Feb-11 437.85437.85 -1.9413-1.9413 1.8337761.833776 3.3627362133.362736213

33 3-Feb-113-Feb-11 442442 -0.93891-0.93891 0.8313860.831386 0.6912033740.69120337444 4-Feb-114-Feb-11 436.7436.7 -1.21365-1.21365 1.106121.10612 1.2235019031.223501903

55 7-Feb-117-Feb-11 426.9426.9 2.295622.29562 -2.40315-2.40315 5.7751164335.775116433

66 8-Feb-118-Feb-11 425.75425.75 0.2701120.270112 -0.37764-0.37764 0.1426113490.142611349

77 9-Feb-119-Feb-11 424.1424.1 0.3890590.389059 -0.49659-0.49659 0.2465984440.246598444

88 10-Feb-1110-Feb-11 417.95417.95 1.4714681.471468 -1.579-1.579 2.4932267552.493226755

99 11-Feb-1111-Feb-11 420.25420.25 -0.54729-0.54729 0.4397660.439766 0.1933938420.193393842

1010 14-Feb-1114-Feb-11 424.4424.4 -0.97785-0.97785 0.8703230.870323 0.7574629490.757462949

1111 15-Feb-1115-Feb-11 425.45425.45 -0.2468-0.2468 0.139270.13927 0.0193961050.019396105

1212 16-Feb-1116-Feb-11 437.15437.15 -2.67643-2.67643 2.5688992.568899 6.5992433346.599243334

1313 17-Feb-1117-Feb-11 432.05432.05 1.1804191.180419 -1.28795-1.28795 1.6588062981.6588062981414 18-Feb-1118-Feb-11 432.7432.7 -0.15022-0.15022 0.0426920.042692 0.0018226020.001822602

1515 21-Feb-1121-Feb-11 451.65451.65 -4.19573-4.19573 4.0881994.088199 16.7133724516.71337245

1616 22-Feb-1122-Feb-11 444.8444.8 1.5400181.540018 -1.64755-1.64755 2.714406492.71440649

1717 23-Feb-1123-Feb-11 436.8436.8 1.8315021.831502 -1.93903-1.93903 3.7598351763.759835176

1818 24-Feb-1124-Feb-11 427.15427.15 2.259162.25916 -2.36669-2.36669 5.6012080955.601208095

1919 25-Feb-1125-Feb-11 433.05433.05 -1.36243-1.36243 1.2549021.254902 1.5747782021.574778202

2020 28-Feb-1128-Feb-11 438.2438.2 -1.17526-1.17526 1.0677351.067735 1.1400576611.140057661


SDSD 1.7211.721



For (MAR-11)Table No-19

48




11 1-Mar-111-Mar-11 443.45443.45 -1.183-1.183 0.7768270.776827 0.6034610.603461

22 3-Mar-113-Mar-11 444.3444.3 -0.19131-0.19131 -0.21486-0.21486 0.0461650.046165

33 4-Mar-114-Mar-11 441.4441.4 0.6570.657 -1.06317-1.06317 1.1303371.130337

44 7-Mar-117-Mar-11 447.25447.25 -1.30799-1.30799 0.9018210.901821 0.813280.81328

55 8-Mar-118-Mar-11 449449 -0.38976-0.38976 -0.01642-0.01642 0.000270.00027

66 9-Mar-119-Mar-11 450.95450.95 -0.43242-0.43242 0.0262480.026248 0.0006890.000689

77 10-Mar-1110-Mar-11 454.8454.8 -0.84653-0.84653 0.4403530.440353 0.1939110.193911

88 11-Mar-1111-Mar-11 449.3449.3 1.2241261.224126 -1.6303-1.6303 2.6578752.657875

99 14-Mar-1114-Mar-11 456.25456.25 -1.52329-1.52329 1.1171151.117115 1.2479461.247946

1010 15-Mar-1115-Mar-11 442.4442.4 3.1306513.130651 -3.53682-3.53682 12.5091212.50912

1111 16-Mar-1116-Mar-11 445.4445.4 -0.67355-0.67355 0.2673790.267379 0.0714920.071492

1212 17-Mar-1117-Mar-11 443.45443.45 0.4397340.439734 -0.84591-0.84591 0.7155580.715558

1313 18-Mar-1118-Mar-11 439.9439.9 0.8070020.807002 -1.21317-1.21317 1.4717921.471792

1414 21-Mar-1121-Mar-11 433.9433.9 1.3828071.382807 -1.78898-1.78898 3.2004493.2004491515 22-Mar-1122-Mar-11 434.4434.4 -0.1151-0.1151 -0.29107-0.29107 0.0847230.084723

1616 23-Mar-1123-Mar-11 436.6436.6 -0.50389-0.50389 0.0977210.097721 0.0095490.009549

1717 24-Mar-1124-Mar-11 439.65439.65 -0.69373-0.69373 0.2875610.287561 0.0826910.082691

1818 25-Mar-1125-Mar-11 455.9455.9 -3.56438-3.56438 3.1582063.158206 9.9742629.974262

1919 28-Mar-1128-Mar-11 461.9461.9 -1.29898-1.29898 0.892810.89281 0.7971090.797109

2020 29-Mar-1129-Mar-11 463.5463.5 -0.3452-0.3452 -0.06097-0.06097 0.0037180.003718

2121 30-Mar-1130-Mar-11 472.85472.85 -1.97737-1.97737 1.5711991.571199 2.4686652.468665

2222 31-Mar-1131-Mar-11 480.2480.2 -1.53061-1.53061 1.124441.12444 1.2643641.264364


SDSD

1.3371.337


Return, Variance and Standard DeviationFor (APRIL-2011)

Table No-20


11 1-Apr-111-Apr-11 446.05446.05 7.6560927.656092 -7.24171-7.24171 52.442452.4424

22 4-Apr-114-Apr-11 481481 -7.26611-7.26611 7.6804927.680492 58.9899658.98996

33 5-Apr-115-Apr-11 455.5455.5 5.5982445.598244 -5.18386-5.18386 26.8724426.87244

44 6-Apr-116-Apr-11 465.95465.95 -2.24273-2.24273 2.657112.65711 7.0602347.060234

55 7-Apr-117-Apr-11 472.45472.45 -1.37581-1.37581 1.7901871.790187 3.204773.20477

66 8-Apr-118-Apr-11 465.55465.55 1.4821181.482118 -1.06774-1.06774 1.1400641.140064

77 11-Apr-1111-Apr-11 460460 1.2065221.206522 -0.79214-0.79214 0.6274880.627488

88 13-Apr-1113-Apr-11 472.4472.4 -2.62489-2.62489 3.0392743.039274 9.2371889.237188

99 15-Apr-1115-Apr-11 449.8449.8 5.0244555.024455 -4.61008-4.61008 21.2527921.25279

49



1010 18-Apr-1118-Apr-11 445.4445.4 0.9878760.987876 -0.5735-0.5735 0.3288980.328898

1111 19-Apr-1119-Apr-11 449.55449.55 -0.92315-0.92315 1.3375251.337525 1.7889741.788974

1212 20-Apr-1120-Apr-11 463.65463.65 -3.04109-3.04109 3.4554673.455467 11.9402511.94025

1313 21-Apr-1121-Apr-11 463.15463.15 0.1079560.107956 0.3064240.306424 0.0938960.093896

1414 25-Apr-1125-Apr-11 466.2466.2 -0.65423-0.65423 1.0686061.068606 1.1419181.141918

1515 26-Apr-1126-Apr-11 464.7464.7 0.3227890.322789 0.0915910.091591 0.0083890.0083891616 27-Apr-1127-Apr-11 451.1451.1 3.0148533.014853 -2.60047-2.60047 6.7624576.762457

1717 28-Apr-1128-Apr-11 446.6446.6 1.0076131.007613 -0.59323-0.59323 0.3519250.351925

1818 29-Apr-1129-Apr-11 450.3450.3 -0.82167-0.82167 1.2360551.236055 1.5278311.527831


SDSD 3.3713.371


Monthly Average Return, Variance and Standard Deviation of Wipro Ltd(NOV2010-APRIL2011)

Table No-21

MONTHMONTH RETURNRETURN VARIANCEVARIANCE SDSD

NOV NOV -0.02-0.02 3.43.4 1.861.86

DECDEC -0.7-0.7 1.51.5 1.221.22

JANJAN 0.50.5 3.13.1 1.761.76

FEBFEB -0.1-0.1 2.92.9 1.71.7

MAR MAR -0.4-0.4 1.71.7 1.31.3

APR APR 0.40.4 11.311.3 3.33.3

Return (X)

Monthly Returns

50



Interpretation:

During NOV 2010- APRIL 2011 return on Wipro ltd stock varies between -0.02 to 0.4

and the risk for the same period varies between 3.4 to 11.3. the lowest volatility was found in

the month 0.1 in the month of feb-11, where the return is lowest in the study period and the

risk is very high . The reasons for this may be investor’s expectation towards the financial


Variance

Variance

51



Interpretation:

During NOV 2010- APRIL 2011 Variance on Wipro ltd stock varies between 3.4

to 11.3, and the return for same period varies between -0.02 to 0.4, the highest volatility was

found in the month of Feb. 2011, when the return is lowest in the study period and the risk is

very high. The reasons for this may be investor’s expectation towards the financial


Standard Deviation:

SD

52



Interpretation:

During NOV 2010- APRIL 2011 return on Wipro Ltd stock varies between 1.86 to 3.3, and

the return for the same period varies between -0.02 to 0.4. the highest volatility was found in

the month of Feb. 2011, where the return is lowest in the study period and the risk is very high.

The reasons for this may be the investor’s expectation towards the financial performance of the

company .

Karl Pearson’s coefficient of correlation Between Infosys and Tcs LtdFor (NOV2010-APRIL 2011)

Table No- 22

53



MONTHMONTH INFOSYSINFOSYS

RETURN(X)RETURN(X)TCSTCS

RETURN(Y)RETURN(Y)X=(XX=(X

AVG1)AVG1)Y=(YY=(Y

AVG2)AVG2)(X)^2(X)^2 (Y)^2(Y)^2 X*YX*Y

NOV NOV -0.11-0.11 0.03-0.03- -0.16-0.16 0.040.04 0.020.02 0.000.00 0.000.00

DECDEC -0.56-0.56 -0.3-0.3 -0.16-0.16 -0.28-0.28 0.280.28 0.080.08 0.170.17

JANJAN 0.440.44 0.040.04 0.380.38 0.050.05 0.140.14 0.000.00 0.020.02

FEBFEB 0.300.30 0.230.23 0.240.24 0.240.24 0.050.05 0.060.06 0.050.05MAR MAR -0.35-0.35 -0.2-0.2 -0.40-0.40 -0.18-0.18 0.160.16 0.030.03 0.070.07

APRILAPRIL 0.630.63 0.10.1 0.110.11 0.110.11 0.320.32 0.010.01 0.060.06

AVGAVG 0.050.05 -0.016-0.016

SUMSUM 0.000.00 0.000.00 0.170.17 0.150.15 0.160.16

Karl Pearson’s coefficient of correlation (r) = 1.00

Average returns of Infosys and Wipro

Interpretation:

Above table and chart depicts the correlation between Infosys and Tcs ltd. Here

Infosys and Tcs ltd can move 10% on time in the same track. The correlation between Infosys

and Tcs ltd is a positive correlation that 1.00.so we can conclude that the price movements of

Infosys and Tcs are not in the same way.

Karl Pearson’s Coefficient of Correlation Between Infosys and Wipro Ltd

For (NOV2010-APRIL 2011)

Table No- 23

54



MONTHMONTH INFOSYSINFOSYS

RETURN(X)RETURN(X)WIPROWIPRO

RETURN(Y)RETURN(Y)X=(XX=(X

AVG1)AVG1)Y=(YY=(Y

AVG2)AVG2)(X)^2(X)^2 (Y)^2(Y)^2 X*YX*Y

NOV NOV -0.116-0.116 -0.02-0.02 -0.16-0.16 0.040.04 0.020.02 0.000.00 0.000.00

DECDEC -0.56-0.56 -0.7-0.7 -0.61-0.61 -0.63-0.63 0.380.38 0.400.40 0.390.39

JANJAN 0.440.44 0.50.5 0.380.38 0.510.51 0.140.14 0.260.26 0.190.19

FEBFEB 0.300.30 -0.1-0.1 0.240.24 -0.03-0.03 0.050.05 0.000.00 0.000.00MAR MAR -0.35-0.35 -0.4-0.4 -0.40-0.40 -0.33-0.33 0.160.16 0.110.11 0.130.13

APRILAPRIL 0.630.63 0.40.4 0.570.57 0.460.46 0.320.32 0.210.21 0.2 60.2 6

AVG1AVG1 0.050.05 -0.06-0.06

SUMSUM 0.130.13 0.000.00 0.170.17 0.030.03 0.060.06

Karl Pearson’s coefficient of correlation (r) = 0.84

Correlation between Infosys and Wipro ltd

Interpretation:

Above table and chart depicts the correlation between Infosys and Wipro ltd. Here Infosys

and Wipro ltd can move 80% on the same track. The correlation between Infosys ltd is a

positive correlation that 0.84, so we can conclude that the price movements of Infosys and

Wipro are the same way.

Karl Pearson’s Coefficient of Correlation Between Tcs and Wipro ltd

For (NOV2010-APRIL 2011)

TABLE NO- 23

55



MONTHMONTH TCSTCS RETURN(X)RETURN(X)

WIPROWIPRO RETURN(Y)RETURN(Y)

X=(XX=(X AVG1)AVG1)

Y=(YY=(Y AVG2)AVG2)

(X)^2(X)^2 (Y)^2(Y)^2 X*YX*Y

NOV NOV 0.030.03 -0.02-0.02 0.040.04 0.030.03 0.000.00 0.000.00 0.000.00

DECDEC -0.3-0.3 -0.7-0.7 -0.28-0.28 -0.64-0.64 0.080.08 0.410.41 0.180.18

JANJAN 0.040.04 0.50.5 0.050.05 0.550.55 0.000.00 0.300.30 0.030.03

FEBFEB 0.230.23 -0.1-0.1 0.240.24 -0.04-0.04 0.060.06 0.000.00 0.010.01MAR MAR -0.2-0.2 -0.4-0.4 -0.18-0.18 -0.34-0.34 0.030.03 0.120.12 0.060.06

APRILAPRIL 0.10.1 0.40.4 0.110.11 0.450.45 0.010.01 0.200.20 0.050.05

AVG1AVG1 -0.01-0.01 -0.05-0.05

SUMSUM 0.000.00 0.210.21 0.030.03 0.170.17 0.050.05

Karl Pearson’s coefficient correlation (r) = 0.72

Correlation between Wipro and Tcs ltd

Interpretation:

Above table and chart depicts the correlation between Wipro ltd and Tcs. Here Wipro and

Tcs ltd can move 70% on time in the same track. The correlation between Wipro and Tcs ltd is

a positive correlation that is 0.72. So we can conclude that the price movements of Wipro and

Tcs are some in the same way.

Findings

The following facts were found out during the project work.

56



• From standard deviation table, we can observe that standard deviation is high in

Wipro when compare to the other sectors.

• The Standard Deviation is increasing in all the sectors.

• In Infosys, Wipro and Tcs a negative average returns is observed in the month

of March.

• Karl Pearson’s coefficient correlation is high, when compare between two

companies Tcs ltd and Wipro ltd.

• We can also observe that average returns is high in Wipro company when

compare to other companies.

Suggestions

57



• As S.D was high with Wipro followed by TCS, risk taking investors can prefer

to invest here as these give higher returns. Day traders can invest an accumulate

good returns as volatility was high. However there is also possibility of hugeloss in case of adverse movement.

• Infosys has low standard deviation and also volatility less. It gives minimum

risk to investor among all companies studied. However returns also low. Risk

averse and long time investors can consider while investing among all

companies.

•

When we want the returns higher we have to bear higher risk. But if we bear higher risk it is meaningless to invest our hard earned income. In this present

project the highest earned income is obtained by the company Wipro.

• In order to get more return from minimum risk we have to analyze the factor

like company background, performance, market value and historical data. It is

suggested to all investors to analyze the fundamental as well as technical.

• Among all the securities Wipro Ltd is best with its high returns and low risk as

compared to Tcs and Infosys

58



Conclusion

• During the year Nov 2010-to April 2011 the price movements of Infosys, Tata

consultancy services and Wipro ltd has been fluctuating.

• The returns of Wipro have been very high as comparison with other two companies that

are Infosys Tata consultancy services.

• Returns of Infosys are high in the month of Jan that is 0.4, in Tcs in the month of Feb.

that is 0.23 and in Wipro in the month of Jan 0.5.

• The correlation between in Infosys and Tcs is 1.00 .

• The correlation between Infosys and Wipro is 0.84.

• The correlation between Tcs and Wipro is 0.72.

• Therefore the correlation is high between Infosys and Tcs that is 1.00.

59



BIBILIOGRAPHY

• Punithavathyapandian , Security Analysis and Portfolio Management Vikas Publisher’s

third edition2009

• S.C.Gupta Fundamental of statistics kalyani publishers. Fifth edition 2006

Websites

• www.infosys.com

• www.nseindia.com

• www.tcs.com

• www.way2wealth.com

• www.wipro.com

http://www.infosys.com/

http://www.nseindia.com/

http://www.tcs.com/

http://www.wipro.com/

http://www.infosys.com/

http://www.nseindia.com/

http://www.tcs.com/

http://www.wipro.com/

3 equity analysis print out for binding

Documents